Warner Bros is Dead. Long Live Skydance.

It’s over. Starting today, Warner Bros. Discovery no longer exists, having been subsumed by what was once Paramount-Skydance into the new megacorporation simply called Skydance after settling the lawsuit initially launched against them by twelve state AGs led by California Attorney General Rob Bonta. Apparently, Bonta, in his infinite wisdom, actually believed the Ellisons when they threatened to move their company to the competent and reliable Tennessee to join Awards Radar’s Favorite Special Boy in the movie business.

From David Ellison:

What once was the peak, is now just the beginning.

Paramount and Warner Bros. shaped over a century of culture. By combining them, we aren’t rewriting history — we’re equipping these iconic studios with a more powerful engine. Together, we are Skydance: a creative-first home for bold, quality storytelling.

Great stuff. I’m sure this scion of a billionaire mogul will follow through on his promises for our best interests as moviegoers. Along with the company’s Saudi Arabian, United Arab Emirates, and Qatari co-owners. So, in exchange for this merger that is guaranteed to reduce healthy competition, lower the quality of films produced by what has become one of the biggest media conglomerates in the world, and cost thousands of creative professionals their jobs, what concessions did Bonta get out of Skydance? Here they are:

• Skydance must theatrically distribute at least thirty feature-length films per year or face a $30 million penalty per failed release. This does not obligate Skydance to produce those movies, however. Re-releases of pre-existing films owned by Paramount count towards their thirty-per-year target.
• Skydance shall set aside a $47.5 million fund to support “workers displaced by the merger.”
• Skydance must establish a special fund to support the acquisition and distribution of independent films to the tune of $5 million every year. Not $5 million per acquisition. Just $5 million annually. For context, Netflix paid more than double that amount just to acquire the distribution rights to Train Dreams last year.
• CNN and CBS News will both be required to institute an “independent editorial board” to oversee and advise the networks on bias in their news coverage. The members of this board will be appointed by… the Skydance corporate board. I’m sure there won’t be any conflict-of-interest issues here as they decide on who to sit on this board ensuring journalistic integrity.
• And all of these concessions, literally every single one of them, are in effect for the next five years. After October 6^th, 2031, Skydance will no longer be bound by any of the obligations laid out in the settlement.
• In addition, there is a force majeure clause in the fine print of the settlement that allows Skydance to disengage from these concessions before that date in situations of:

War, rebellion, hurricanes, other major storms, earthquakes, fires, terrorism, pandemics, strikes, labor disruptions, economic recessions, riots, insurrections, civil commotions (???), and blockades.

I’ll let you decide who got the better end of the deal.